Method and system for transferring electronic funds

ABSTRACT

A method and system for transferring electronic funds over the Internet wherein a sender provides payment information to a transfer processing system. The sender may choose from a plurality of different types of funds transfer, such as wire transfer, Western Union money transfer, various types of checks, and transfers to ATM debit/credit cards. The transfer processing system sends an electronic payment message to a recipient indicating the transfer of funds and a transfer message to a financial institution providing instructions to debit the sender&#39;s account and make those funds available to the recipient. If the recipient has an account with a financial institution that is affiliated with the transfer processing system of the present invention, the funds are credited to the recipient&#39;s account wherein the payment message serves as a confirmation message. If the recipient does not have such an account, the recipient may access the transfer processing system to access the funds made available by the system wherein the payment message serves as a payment availability message.

FIELD OF INVENTION

The present invention relates to the field of electronic funds transfervia the Internet wherein a sender provides payment information to an online transfer processing system which sends an electronic paymentmessage to a recipient indicating the transfer of funds and a transfermessage to a financial institution that debits the sender/payor'saccount and makes those funds available to the recipient. The receipt ofthe electronic payment message from the sender unequivocally informs thereceiver that funds have been successfully transferred and are availablefor withdrawal or other transactions.

BACKGROUND OF THE INVENTION

In a typical financial transaction, a payor transfers funds to a payeethrough one or more financial institutions. Generally, the transactioninvolves a payor who submits a request to his or her bank to transfer aspecific amount of funds to a payee's account. The payor's bank debitsthe payor's account and contacts the payee's bank. The payee's bank thencredits the payee's account with funds from the payor's account.Finally, the funds are made available to the payee for withdrawal.However, this process usually takes several days or weeks to complete.In other words, the funds are not available to the payee for an extendedperiod of time after the transaction has been initiated. The typicalfunds transfer process unnecessarily delays business transactions. Thisis particularly fatal for Internet businesses where speed andavailability of funds are essential. Another problem arises when thetransaction is not executed properly due to security problems or errorsin entering multiple identification codes. These and related problemsfurther prolong the transaction process and delay fund availability.

International transfer of funds is especially complicated because ofvarious government regulations and the use of different currencies.International transfer of funds requires the payor to obtain therelevant exchange rate in order to calculate the equivalent value of theforeign currency. The rate of exchange is not always available to thepayor. This lack of important information generally delays internationalfunds transfers.

The Internet has provided numerous opportunities for purchasers tobrowse and shop on line. In particular, the Internet has made buying andselling goods, information and services increasingly easy, convenientand affordable. The opportunities to buy and sell over the Internet arevast and plentiful, however, a system and method of payment thatcomplements the speed and convenience of the Internet has yet to beimplemented.

These and other drawbacks exist with current systems.

SUMMARY OF THE INVENTION

An object of the present invention is to overcome these and otherdrawbacks with existing systems.

It is an object of the present invention to provide a system and methodfor transferring funds over the Internet wherein a sender providespayment information to a transfer processing system wherein the transferprocessing system sends a payment message to a recipient indicating thetransfer of funds and a transfer message to a financial institution thatdebits the payor's account and makes those funds available to therecipient.

It is another object of the present invention to provide a system andmethod of funds transfer over the Internet wherein a payment messageindicating information of funds transfer is sent to an electronicaddress of a payee where the payment message may be sent by email, AOLInstant Messenger™, NetMeeting™, Microsoft Chat™, ICQ™, NetscapeMessenger™, or other electronic communication methods wherein receipt ofthe message by the payee informs the payee that funds have been or arein the process of being transferred and are or will shortly be availablefor withdrawal or other transactions. The payment message may also besent as a text message to a cell phone.

It is another object of the present invention to transfer funds over theInternet to a recipient's account with an IBQ financial institution'stransfer processing system where receipt by the recipient of a paymentmessage informs the recipient that funds have been successfullytransferred.

It is another object of the present invention to transfer funds over theInternet to a recipient who does not have an account through use of afinancial institution's online transfer processing system where receiptof a payment message by the recipient informs that recipient that fundsare available for withdrawal once the recipient establishescommunication with the financial institution's online transferprocessing system over the internet. In this situation, the sender mayconvey a password to a recipient through a separate method ofcommunication where the password allows the recipient to gain access tothe funds transferred and made available through the transfer processingsystem.

It is another object of the present invention to transfer funds over theInternet where a payor's personal account number is not conveyed, apayee's personal account number is not required, and funds may beconveyed anonymously.

It is another object of the present invention to provide a system andmethod of funds transfer over the Internet where the payee mayautomatically redirect funds received from the payor to a second payeewithout even opening an account with the fund transfer system.

The present invention provides a system and method of funds transferover the Internet where security measures are implemented to ensure safeand confidential transfer of funds. Users may transfer funds throughvarious methods including email transfers, wire transfers, electronicchecks, certified checks, conventional checks, Western Union moneytransfer, transfers to ATM debit/credit cards, letters of credit,buy/sell securities, stop payment orders, and other types oftransactions.

A payor system enters payment information to a transfer processingsystem such as an IBQ Server™ developed according to the presentinvention through the Internet. The transfer processing system (e.g.,IBQ Server) verifies that the payor system has the requisite amount ofmoney in a specified payor's account in a financial institutionassociated with that transfer processing system to make the desiredtransfer. Communication between the transfer processing system and thepayor's financial institution may occur to exchange account information.Transfer processing system sends a transfer message to the payor'sfinancial institution and simultaneously sends a payment message to thepayee. The payment message may contain information regarding the fundstransfer.

When the payee system receives the payment message over the Internet,the payee system is notified of the availability of funds where thefunds may be (1) transferred into the payee system's account where thepayee system's bank is a member of the transfer processing system or (2)made available to the payee system by establishing a connection with thetransfer processing system where the funds may be redirected as desiredby the payee system. The receipt of a payment message from a payorsystem through a transfer processing system to a payee system indicatesthat (1) the payee has received the funds in an account with thetransfer processing system of the present invention or (2) moneytransfer has been successfully initiated and funds are or will beavailable for withdrawal or further funds transactions through thetransfer method selected by the payor. A payor system may include anindividual, a group of individuals, a company, a merchant, or any otherentity that may need to make a payment. Likewise, a payee system mayinclude an individual, a group of individuals, a company, a seller ofgoods or services, or any other entity that may receive a payment. Thus,individuals or other entities may transfer funds while sending messagesover the Internet.

The payee may receive different types of messages. The payment messagemay indicate that the transfer of funds has been completed and thepayee's personal account has been credited accordingly (in the case ofan email transfer between two system account holders). Instead, when thepayee does not have an account and the payor requests an email transfer,the payment message may inform the payee that funds have beentransferred from the payor's account and are now immediately availableto the payee for withdrawal or other transactions. Also, if the payorselects a transfer other than an email transfer, the payee may receive apayment message indicating a wire transfer, a mail delivered check, oran electronic check has been initiated, or that the payee may withdrawcash from a financial institution that is associated with the presentinvention. In any case, the payee system may then receive the funds andredirect those funds to whomever the payee desires through a selectionof different transaction methods. Transactions in accordance with thepresent invention occur online in real time. Thus, transfer of fundsaccording to the system of the present invention is similar to theexchange of cash between two entities. The payee is informed of theavailability of funds and may immediately use the transferred fundstowards a purchase, a debit payment, or any other financial transaction.

The present invention provides banking services to individuals and localbusiness communities with the ability to promote commercial links aroundthe world. The present invention provides secure and convenient bankingservices on the Internet. Banking communications are thoroughlyencrypted and supplied with a unique electronic signature to ensureconfidentiality and security. Most recent and historic account(s)activity reports may be available to the subscribers of the presentinvention upon request. Also, subscribers may verify the balance in hisor her account(s) at any time. Subscribers may maintain multipleaccounts to manage all types of financial transactions, includingpersonal and business related fund transfers. Email transfers, wiretransfers, electronic checks, certified checks, conventional checks,Western Union money transfer, and other transaction activities areavailable. The present invention provides flexible Internet access,secure remote banking tools, multi-currency capability and fast on-lineapplication, processing and management. Users may send cash in minutesthroughout the entire world for personal and business reasons.

The present invention simplifies the process of exchanging money forpurchases over the Internet. If both the buyer and seller have accountswith a financial institution affiliated with a transfer processingsystem according to the present invention, funds are transferred fromthe buyer's account to the seller's account instantly by the transferprocessing system(s) and confirmed by the buyer and seller's affiliatedfinancial institutions. In this case, the buyer may access his or heraccount with the present invention from the seller's web page, completea form for funds transfer, input the seller's information, and providean electronic signature to make an instant electronic payment. Also, thebuyer may complete an invoice on the seller's web-site, provide thebuyer's personal account information of the present invention, andprovide an electronic signature to successfully make an electronicpayment.

Other objects and advantages of the present invention will be apparentto one of ordinary skill in the art upon reviewing the specificationherein.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a diagram of an overall system of funds transfer where thepayor and payee are subscribers to a system according to an embodimentof the present invention.

FIG. 2 is a diagram of an overall system of funds transfer where thepayee is not a subscriber to the system according to an embodiment ofthe present invention.

FIG. 3 is a detailed diagram of an overall system for transferring fundsover the Internet according to an embodiment of the present invention.

FIG. 4 is a flowchart illustrating a process of electronic fundstransfer according to an embodiment of the present invention.

FIG. 5 is a flowchart illustrating a process of electronic fundstransfer where both the payor and payee are subscribers of the presentinvention.

FIG. 6 is a flowchart illustrating a process of electronic fundstransfer where the payor is a subscriber of the present invention butthe payee is not.

FIG. 7 a illustrates a screen shot of a graphical user interface forrequesting an email transfer where a payee maintains an account with thesystem according to an embodiment of the present invention.

FIG. 7 b illustrates a screen shot of a graphical user interface forrequesting an email transfer where a payee does not maintain an accountwith the system according to an embodiment of the present invention.

FIG. 8 a illustrates a screen shot of an email received by a payeeaccording to an embodiment of the present invention.

FIG. 8 b illustrates a screen shot of a graphical user interface foraccessing funds transferred to a payee according to an embodiment of thepresent invention.

FIG. 9 illustrates a screen shot of a graphical user interface forrequesting a Western Union money transfer according to an embodiment ofthe present invention.

FIG. 10 illustrates a screen shot of a graphical user interface forrequesting a check transfer according to an embodiment of the presentinvention.

FIGS. 11 a and 11 b illustrate a screen shot of a graphical userinterface for requesting a wire transfer according to an embodiment ofthe present invention.

FIG. 12 illustrates a screen shot of a graphical user interface forrequesting an ATM credit/debit card transfer according to an embodimentof the present invention.

FIG. 13 is a diagram of a system where clients of different processingsystems transfer funds according to an embodiment of the presentinvention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

The present invention relates to methods and systems for transferringfunds over the Internet. In these systems and methods, a payor systemmay provide payment information to a transfer processing system of thepresent invention to make a funds transfer. That transfer processingsystem is affiliated with a financial institution wherein a payor'saccount has been designated for use by the transfer processing system.For purposes of example, the account may be designated as an IBQ™account so that funds in that account are available for use by an IBQServer™ (transfer processing system) for on-line money transfers. In apreferred embodiment, each member financial institution has its own IBQserver. Further, each member institution maintains its own account witha Settlement Bank. The Settlement Bank may maintain accounts for allsystem member banks to settle inter-bank clearance. After verifying thatsufficient funds exist in the payor's account, the IBQ server transmitsa transfer message to a financial institution and a payment message tothe payee system. The transfer message informs the financial institutionhow much to debit from the payor's account. If the payee system has anaccount with a financial institution that is a member of the transferprocessing system, the transfer message may also inform the financialinstitution how much to credit the payee's account. This is called anIBQ transfer because both participants are IBQ system customers. Thepayment message informs the payee system that funds have beentransferred and are available.

When the payee receives an electronic payment message from the payor,the payee is informed that funds have been successfully transferred tothe payee and are now immediately available. For an IBQ transfer,because the payee has an account with a transfer processing system ofthe present invention, the payment message unequivocally informs thepayee that funds have been transferred to the payee's account at afinancial institution that is an IBQ member. An email transfer may alsobe sent to a payee that does not maintain such an account. For thatsystem, the payee may enter the transfer processing system (IBQ server)through the Internet and easily retrieve the funds transferred from thepayor by inputting a password separately provided to the payee by thepayor. This method and system of electronic funds transfer providesspeed, convenience and security in financial transactions over theInternet.

The funds may be transferred through a plurality of payment methodsincluding an email transfer (described above), wire transfer, electroniccheck, conventional check, Western Union money transfer, transfer to ATMDebit/Credit cards, letters of credits, buy/sell securities, stoppayment orders, and other types of transfers.

The present invention combines electronic messaging and financialtransactions into one fast, convenient, affordable, easy-to-use systemover the Internet. This combination provides an extremely beneficialsystem for Internet-based business transactions which require fasttransactions and easy accessibility. Transfer of funds according to thepresent invention may be completed in the normal amount of time it takesfor a recipient to receive an electronic message from a sender.Generally, electronic messages are received instantaneously or in amatter of seconds. The speed at which funds are transferred through thesystem of the present invention is very beneficial for Internet-basedtransactions world-wide.

The payment information and payment message may be sent via email, AOLInstant Messenger™, NetMeeting™, Microsoft Chat™, ICQ™, NetscapeMessenger™ and other methods of electronic communication over theInternet. In addition, a payment message may be sent as a text file to acell phone or other communication methods so that a recipient may beinformed of funds transfer even when access to the Internet is notimmediately available. Upon receipt of the payment message by the payee,the payee is assured that the funds have been successfully transferred.Subsequently, the payor may receive confirmation of the transaction.

For example, after negotiations between a merchant and a buyer forgoods, the buyer may access the present invention to make a payment forthe goods at the agreed price. The buyer may access the presentinvention and complete a payment order by providing the merchant's emailaddress, the buyer's electronic signature, and possibly otherinformation as well. The specifics of the order may be sent as a textfile or as an email message to the merchant with the payment message. Ifboth the merchant and buyer maintain accounts with a participatingfinancial institution according to the present invention, the merchant'saccount is credited instantly and the goods are on their way to thebuyer. If the merchant does not maintain an account with the system, themerchant may easily access the transfer processing system through theInternet (or other methods, if desired) and withdraw the fundstransferred by entering security information. The merchant may evenredirect the funds received to the merchant's account at a differentbank electronically through the system.

The present invention also allows payor systems to transfer funds to apayee system without knowledge of the recipient's account number oranything beyond an email address, chat name, ICQ name and the like.Also, the sender's account number may not be conveyed to the payeesystem to conduct an electronic funds transaction. This feature of thepresent invention preserves user security and protects highlyconfidential information. According to another embodiment, payor andpayee personal account numbers may not be disclosed to either user inaccessing funds, thereby maintaining the confidentiality of both accountnumbers. This feature of the present invention applies to the situationswhere (1) both the payor system and the payee system have accounts withthe transfer processing system and (2) only the payor system has anaccount with the transfer processing system, as well.

More specifically, when both the payor and payee maintain accounts withthe present invention, the system provides internal authentication.Security and confidentiality are preserved because the entire fundstransfer transaction occurs within the system. Thus, personal accountinformation and passwords are not required to safely transfer fundsbetween two subscriber entities.

When the payee does not maintain an account with the system, a paymentcontrol number (PCN) generated by a transfer processing system isconveyed to the payee, such as by including that number as part of thepayment message to the payee. To access the funds transferred, the payeeenters the transfer processing system, enters that PCN and then enters apassword provided by the payor. In one embodiment, the password may beconveyed to the payee through a method of communication that isdifferent from the method used to convey the payment message. Forexample, the payment message may be sent as an email while the passwordused to retrieve the funds may be conveyed by telephone, fax, cellphone, a separate email to a different account, or other modes ofcommunication. The non-subscriber payee may then access the transferredfunds at the transfer processing system by supplying specifics of thetransaction, a reference number, and the password conveyed by the payor.

FIG. 1 is a diagram of an overall system according to the presentinvention where both the payor system and payee system are accountholders of a system of the present invention, as shown by 100 (e.g., IBQaccount holders). This figure illustrates an embodiment of the presentinvention where both payor system 110 and payee system 120 have accountsat financial institution 180 (e.g., IBQ™ accounts) that maintains or isotherwise affiliated with transfer processing system 140 (e.g., an IBQ™Server). Payor system 110 may enter payment information 125 at transferprocessing system 140 through the Internet. Payor system 110 may inputpayment information 125 at transfer processing system 140 or may sendpayment information 125 as a packet over the Internet. Transferprocessing system 140 verifies that payor system 110 has adequate fundsto make the transfer requested. Transfer processing system communicateswith financial institution 180 about member accounts so thatverification may be established automatically. Payor system 110 may alsohave access to account information through transfer processing system140. The payment message 130 is sent to payee system 140 through theInternet while a transfer message 135 is sent to the financialinstitution 180. Transfer processing system 140 debits and credits payorand payee accounts pursuant to the payor system's payment instructionsinstantly. Once payee system 120 receives payment message 130, payeesystem 110 is informed that funds have been successfully transferredfrom the payor's account to the payee's personal account. At this point,the transfer of funds has been completed and the payee system is assuredof proper credit to the payee's account. Payee system 110 may access thefunds, transfer the funds to a different entity, or perform othertransactions. Depending on the type of funds transfer, once the payeereceives the payment message which provides confirmation of fundstransfer, payee system 120 may redirect those funds through one or moreof the following:

(1) Western Union—The payee may issue a request to have the fundstransferred from his or her account to Western Union for cash delivery;

(2) Financial Institution Withdrawal—The payee may withdraw funds in hisor her account from his/her member financial institution such as ATM184, cash withdrawal at the financial institution, additional wiretransfers, etc.;

(3) Check issuance—The payee may issue a check from those funds tohimself to take to clear at another financial institution; or

(4) Other funds related establishments.

FIG. 2 is a diagram of an overall system 200 according to the presentinvention where the payee system is not a subscriber of the system ofthe present invention. This figure illustrates an embodiment of thepresent invention where payor system 110 maintains an account withfinancial institution 180 while payee system 120 does not. Payor system110 may enter payment information 125 directly at transfer processingsystem 140 through the Internet. Payor may input payment information 125at transfer processing system or may send payment information 125 as apacket over the Internet. Transfer processing system 140 verifies thatpayor system 110 has adequate funds to make the transfer requested.Transfer processing system 140 communicates with financial institution180 about member accounts so that verification may be establishedautomatically. Payor system 110 may also have access to accountinformation through the transfer processing system. Transfer processingsystem 140 generates a PCN is sent to payee system 140 in paymentmessage 130 through the Internet. A transfer message 135 is sent to afinancial institution 180. Transfer processing system 140 debits thepayor's account pursuant to the payor system's payment instructionsinstantly.

Payor system 110 may convey a password 115 to payee system 120 through aseparate communication means, such as a telephone, cell phone, fax, anemail to a different account, or other mode of communication. Byseparating the payment message which contains valuable informationregarding funds transfer and the password that is needed to actualreceive the funds, security is maintained.

In this embodiment, payee system 120 comprises an email address (orother nickname for AOL, ICQ, etc.) enabled device that receives themessage. Payee system 120 may then access transfer processing system 140through the Internet to actually retrieve the funds. To retrieve thefunds made available, payee system 120 inputs password 115, the PCNconveyed in the payment message, and specifics of how that payee desiresto receive the funds transfer, including Western Union, ATM, forwardingthe funds to an IBQ account opened by the payee, etc.

Although these steps are performed to actually retrieve the funds, oncepayee system 120 receives payment message 130, payee system 110 isinformed that funds are immediately available. Payee system may accessthe funds, transfer the funds to a different entity, or perform othertransactions. Depending on the type of funds transfer, once payeereceives the payment message which provides confirmation of fundstransfer, payee system 120 may access the funds through a Western Unionoffice 182, an ATM 184, or a different bank 186, or other funds relatedestablishments to which funds may be made available for access.

Payment message 130 may be in the form of an email message, a message ina chat room, instant messenger, ICQ, or other similar methods of sendingmessages over the Internet. Also, payment message 130 may be sent as atext file to a cell phone of the payee system. In these embodiments, thechat program, instant messenger, ICQ, or other modules are IBQ enabledso sending the message also initiates contact with an IBQ server toinitiate funds transfer.

FIG. 3 is a detailed diagram of an overall system according to thepresent invention, as shown by 300. Payor system 110 may select the typeof funds transfer. Funds may be transferred through an email transfer150, Western Union money transfer 151, check transfer 152, wire transfer153, ATM debit/credit card transfer 154, and other methods oftransferring funds 155, such as letters of credit, buy/sell securities,or stop payment orders. Check transfer module 152 may include electronicchecks, certified checks or regular checks. Transfer processing system140 also provides for a payment interface system 142. One or more payorsystems 110 (e.g., user terminals connected over the WWW) are providedthat may enter payment information to be processed by transferprocessing system 140. Transfer processing system 140 sends a transfermessage 135 to financial institution 180 and a payment message 130 topayee system 120. A plurality of payee systems 120 may be provided insystem 200. The subscriber's account information, transaction histories,and other relevant information are stored in databases 160 and areaccessible by transfer processing system 140. Funds transfer may berealized by either crediting the payee's account at financialinstitution 180, providing access to the funds via Western Union 182,financial institution withdrawal (e.g., ATM 184), as a check availableat a different financial institution 186, or other methods of accessingfunds.

For example, if both payor system 110 and payee system 120 aresubscribers to transfer processing system 140, the payor's account isdebited and the payee's account is credited pursuant to the payorsystem's instructions instantly. If payor 110 is a subscriber to amember financial institution 180 while payee 120 is not, the payor's IBQaccount is debited and those funds are made available to payee system120. Payee system 120 may then access transfer processing system 140through the Internet to retrieve the funds transferred by subscriberpayor system 110 by entering specific transaction information.

FIG. 4 is a flowchart illustrating a funds transfer method 400 accordingto an embodiment of the present invention. A payor may enter thetransfer processing system through the Internet/WWW at 401. A payor mayview his or her account statement to determine whether the desiredamount of funds may be transferred, at step 405. The payor may theninput information to make a transfer. At step 410, the payor may selecta type of funds transfer, which may include email transfer; WesternUnion money transfer; check transfer (e.g., an electronic check,certified check or regular check); wire transfer; ATM debit/credit cardtransfer; letters of credit; buy/sell securities; stop payment orders;and other types of transactions. An electronic form corresponding to thedesired method of transfer prompts the payor to enter appropriateinformation specific for each type of transmission. These transactionsmay occur within the financial institution where both the payor andpayee have accounts. Alternatively, the transactions may occur between apayor who has an account with one of the member financial institutionsand a payee who does not maintain an account with one of the financialinstitutions. At step 420, the payor may input the type of currency,amount of transfer and the payee's ID (e.g., electronic address, ICQname instant messenger address, chat room names, etc.). The transferprocessing system may verify the amount available, at step 425. If fundsare insufficient for transfer, the system may deny the ability to sendinstructions for payment. Depending on the type of funds transferselected, the payor may input additional information for propertransaction, at step 430. The payor may also input his or herinformation at step 440, which may include an electronic signature, apersonal message or other information used by the system to authenticatethe payor. The transfer processing system 140 sends a payment message tothe payee and a transfer message to a financial institution, at step450. Finally, the transferred funds are made available for the payee, atstep 460.

FIG. 5 is a flowchart illustrating a funds transfer method involving apayor and a payee who are both subscribers to the system of the presentinvention. The subscriber payor may select to send funds to a subscriberpayee through an IBQ transfer, at step 210. The subscriber payor mayenter the subscriber payee's email address 212, a personal message 214,the type of currency 216, and other relevant information. The subscriberpayor may receive a confirmation message at step 218 where an electronicsignature may be requested from the payor for verification, at step 220.Where both the payor and payee are subscribers to the present invention,security passwords may be avoided, if desired, because the entire fundstransaction occurs within the system of the present invention.

Once a subscriber payor inputs payment information, transfer processingsystem 140 sends a transfer message to a transfer processing system (seeFIG. 13) associated with a financial institution where the payee'saccount is opened pursuant to the payor's request, at step 224. Thefunds are directly transferred from the subscriber payor's personalaccount into the subscriber payee's personal account, at step 226.Simultaneously, the subscriber payee receives a confirmation messagefrom the subscriber payor through the transfer processing system 140informing the subscriber payee that the funds have been successfullytransferred and are now available, at step 228. The subscriber payor maythen receive confirmation that the money transfer has been successfullyprocessed, at step 230. The subscriber payee may check the status of thetransaction and verify that the funds have been properly transferred byentering the transfer processing system, at step 240. At this point, thesubscriber payee may withdraw the funds, redirect the funds, monitor thetransaction and perform other related activities. In particular, thepayee may make a transfer to a different account within the presentinvention, order a wire transfer, make a transfer via Western Unionmoney transfer, generate a check, an electronic check or a certifiedcheck, make a transfer to an ATM or credit/debit card, or retrieve cashat a bank that subscribes to the present invention.

FIG. 6 is a flowchart illustrating a funds transfer method involving apayor who is a subscriber to the system and a payee who is not asubscriber to the system of the present invention. The subscriber payormay select to send funds to a payee through an email transfer, at step310. The subscriber payor may enter the payee's email address 312, apersonal message 314, the type of currency 316, and other relevantinformation. The subscriber payor may receive a confirmation message atstep 318 where an electronic signature may be required for verification,at step 322. In addition, the subscriber payor may enter a password forthe payee's transfer access for security purposes, at step 320.

The subscriber payor may inform the payee of the password through aseparate method of communication, such as phone, facsimile, a separateemail in a different account or other modes of communication to ensuresecurity and confidentiality, at step 326. In one embodiment of thepresent invention, password is transferred through an alternativechannel outside of the system of the present invention. By separatingthe message indicating funds transfer and the password required toretrieve the funds transferred, security is enhanced because theinformation to access the funds is not contained in one single message.Although, according to the present invention, the password may beencrypted with the payment message as well or may simply be sent withthe message, although doing so may not be entirely secure.

In another embodiment of the present invention, the payor may implementan added security measure. This may include requiring a payor to confirmthe transfer before the actual transaction takes place. In this case,the payee sends a message to the payor stating certain confidentialinformation regarding transfer for verification. The payor may thenconfirm the transaction with his or her personal electronic signature toallow the transaction to actually occur. Thus, the payee providesverification by inputting a reference number and a password provided bythe payor while the payor confirms the accuracy of the verification andsubsequently permits the transaction to occur.

When the payor inputs payment instructions over the Internet, thetransfer processing system sends a transfer message to its financialinstitution, at step 328. The funds are deducted from the subscriberpayor's personal account with the present invention and made availableto the payee, at step 330. Simultaneously, the transfer processingsystem sends a payment message to a payee informing the payee that thefunds are available through the present invention, at step 332. Theemail message may also provide the payor's information, the PCNgenerated by the transfer processing system, the personal message fromthe subscriber payor, and instructions for retrieving the money throughthe present invention. For example, a merchant may convey the details ofa particular order for goods or services along with his payment. Also, amerchant may include a file attachment which may include a contract orother documents relating to the purchase of goods or services. Thesubscriber payor may then receive confirmation that the money transferhas been successfully processed, at step 333. The payee may enter thetransfer processing system through the Internet to retrieve the fundsmade available by the subscriber payor, at step 334. The payee may clickon an icon to receive money, at step 336. At this point, the payee mayenter the payor's information and the PCN generated by the transferprocessing system at step 338, and the authentication password providedby the subscriber payor (e.g., through a separate method ofcommunication, at step 340. The payee may then withdraw the funds,redirect the funds (by opening an IBQ account), monitor the transactionand perform related activities, at step 350. In particular, the payeemay make a transfer to an account within the present invention, order awire transfer, make a transfer via Western Union money transfer,generate a check, an electronic check or a certified check, make atransfer to an ATM or credit/debit card, or retrieve cash at a financialinstitution that holds a membership to the present invention. The payeemay also then monitor the status of those transactions. If desired, thepayor may be notified when the payee accesses the funds and/or transfersthe funds, opens an account, etc.

If a payee needs the funds quickly, that payee will desire to use theredirect feature because opening an IBQ account may take time. Also, thepayee may also desire to remain anonymous to a certain extent with theIBQ system. In that case, the payee is able to redirect the funds heldfor the payee to case or to an account already established by the payee(e.g., through wire transfer, etc.).

FIGS. 7 a and 7 b are illustrations of screen shots of graphical userinterfaces through which a payor may request an email transfer. Thepayor may provide an electronic address of the payee. If the payor doesnot indicate an amount to be transferred, a personal message is sent tothe addressee, but no funds are transferred. The present inventionfunctions as an email service if the payor fails to specify an amount tobe transferred. The payor may even include file attachments which mayinclude documents, advertisements, or other pertinent informationrelated to business or personal transactions.

For example, Bob Smith may send a payment for lawn services to Joe Jonesat Green Lawns, Inc. as detailed in FIG. 7 a. Bob Smith may have anaccount with the present invention with an email address ofbobsmith@ibq.com. Bob Smith may send his monthly lawn payment to JoeJones through an email transfer according to the present invention.Since Bob Smith has an account with the system, his name automaticallyappears in the “From” line. Bob Smith may enter Joe Jones' emailaddress, a brief description of the transfer in the “Subject” line, afile attachment which may include a document regarding the details ofthe lawn service, the amount of payment, and a detailed message. BobSmith may also send a courtesy copy of this email to Joe Jones' seniormanager, Ed George. However, payment is entered into GreenLawns' accountwhile Ed George receives a copy of the email message.

If Joe Jones maintains an account under Green Lawns, Inc. with thepresent invention, Bob Smith may send his payment to greenlawns@ibq.comwhere receipt of the email message informs Joe Jones at Green Lawns,Inc. that payment has been successfully transferred. If Green Lawns,Inc. does not maintain an account with the present invention, Bob Smithmay send the payment to Joe Jones' email address at Green Lawns, Inc.(e.g., joejones@greenlawns.com) as shown in FIG. 7 b. Joe Jones of GreenLawns, Inc. may access the funds transferred from Bob Jones, once thepayment message is received, through the transfer processing system ofthe present invention. Instructions regarding the retrieval of funds maybe detailed in the payment message sent to Joe Jones through an email,as shown in FIG. 8 a, for example. Other methods of communicatinginstructions may also be used.

FIG. 8 a is an illustration of an email message received by a payee upona funds transfer. The message informs the payee that transferred moneymay be retrieved from the transaction processing system, such as byaccessing a transfer processing system through the Internet according tothe present invention. Instructions to retrieve the funds transferredare provided to the payee in the message. The message informs the payeeof the payor's name, the payor's email address, and a PCN, which isgenerated by the transfer processing system, that the payee enters intothe transfer processing system to retrieve the funds transferred. Also,the payee receives a personal message sent by the payor through the samesystem that provides the funds transaction. The payee may providespecifics of an order, specific directions, or other information thatmay be relevant to the transaction.

The payee does not have to be a subscriber of the present invention toretrieve money. In order to preserve authenticity and security, eachmessage and transaction may be verified through a PCN provided in theelectronic message and a password provided by the payor through aseparate method of communication. The password may be provided by thepayor or generated randomly by the system. Thus, the payee may check onthe status of the transaction by inputting the PCN and password. On theother hand, transactions between subscriber payors and subscriber payeesare more simple and very secure because each transaction isauthenticated and verified within the system. Also, the fundstransferred to a subscriber payee are conveniently deposited in thesubscriber payee's personal account of the present invention.

For example, Joe Jones of Green Lawns, Inc. may access the web-site ofthe present invention to access the funds transferred. FIG. 8 billustrates a graphical user interface on the web-site of the presentinvention which allows a payee who does not have an account with thesystem to access the funds transferred. In this example, Joe Jones mayenter Bob Smith's name and PCN provided by the payment message sent byemail (FIG. 8 a) and a password given to Joe Jones such as by a separatemethod of communications (e.g., a phone call, fax, or pager). Joe Jonesmay then access the money and redirect the payment to Green Lawn'scorporate account. Joe Jones may also open an account with the system onbehalf of Green Lawn, Inc. to facilitate future transactions through thesystem.

According to an embodiment of the present invention, the payor may alsospecify certain limitations when providing the payee the right towithdraw from the payor's account. For example, the payor may specify atime frame for when a payee may exercise his or her rights to access thefunds made available to the payee. If the payee fails to exercise thisright to the funds transferred by a specified date, the funds may bereturned to the original account of the payor.

Although the preferred transfer methods involve an IBQ or emailtransfer, the IBQ system also enables subscribers to initiate othertransfer methods through the web and the IBQ server. An advantage ofusing the IBQ system to initiate these types of transfers is to allowthe initiator to remain anonymous to the payee and to allow the payor totrace the status of each transfer online through the IBQ server. The IBQserver provides the payor with up-to-the-minute status information sothe payor knows the exact date and time when the payment is made.

The payor may select to transfer funds to a payee through an emailtransfer, Western Union money transfer, electronic check, certifiedcheck or other types of check, wire transfer, transfer to a debit/creditATM card, Letter of Credit, Buy/Sell securities, stop payment orders orother methods of funds transfer. An electronic form corresponding to theselected method of transfer prompts the payor to enter appropriateinformation for proper transmission. Security features may also beenforced to maintain confidentiality. Payors may select the mostconvenient type of funds transfer based on personal or businesspreferences which may depend on the type of transaction and preferencesof the intended recipient.

One method of transferring money available through the present inventionis a Western Union money transfer that provides a fast and reliablemethod of transferring funds around the world. There is no need to waitfor a check to clear or arrive in the mail. Western Union money transferis an efficient way for payors to access funds from their bank accounts.The transaction is generally completed within a few hours where thetransfer may be collected in cash.

As discussed above, FIG. 4 provides an overview of a funds transferprocess according to the present invention. With respect to a WesternUnion money transfer transaction, the payor may input additionalinformation at step 430. FIG. 9 is an illustration of a screen shot of agraphical user interface for a payor to perform to a Western Union moneytransaction. The payor may enter an electronic address and a personalmessage. In addition, the payor may enter the name of the individual whoretrieves the funds. A destination city, province/state and country mayalso be specified. Some countries may require a test question so thatthe individual, designated as the person who picks up the funds, isprompted with the question. Once the proper answer is given, theindividual may retrieve the funds.

For example, Karen Brown owns a small card store that sells paperproducts and greeting cards. Karen Brown may need to transfer funds inthe form of a Western Union money transfer to a seller of specialtygreeting cards in France. She is late on an important payment and needsto transfer funds quickly and safely. Karen Brown has an account withthe present invention and an email address of karenbrown@ibq.com. Karenmay attach a document as a file attachment, which may include an invoicedetailing the types of greeting cards and the amounts needed by KarenBrown, and a brief personal message. She may send the payment in USdollars and the system converts the funds into the currency of thedestination country. In this example, 600 US dollars will be convertedinto French Francs. Karen Brown may input a question with an answer andrelay that answer to Anna so that Anna may receive the transferred fundsby inputting the correct answer. Once Anna receives the payment messagenotifying her of the transfer through Western Union money transfer, Annamay obtain the funds through a participating financial institution, suchas a Western Union outlet.

Another method of transferring money available through the presentinvention is through Check Issuance, which may include the issuance ofelectronic checks, certified checks, and regular checks. By requestingfunds transfer by check issuance, the transfer processing system mayprepare the specified type of check and send the check eitherelectronically or by mail. A payor may send a message to a payeeindicating that a check was sent or will be sent by either mail or inelectronic form.

As discussed above, FIG. 4 provides an overview of a funds transferprocess according to an embodiment of the present invention. Withrespect to a check transaction, the payor may input additionalinformation at step 430. FIG. 10 is an illustration of a screen shot ofa graphical user interface for a payor to request a check paymenttransaction. The payor may enter an electronic address and a personalmessage. In addition, the payor may enter the name of the entity towhich the check is to be issued. An address of the payee and memoexplaining the type of transaction or other pertinent information mayalso be entered. The check is delivered to the mailing address specifiedby the payor. The method of delivery may also be specified, which mayinclude DHL, UPS, FedEx, EMS, registered mail, or other methods ofdelivery.

Electronic checks may be used for money transfers in accordance with thepresent invention. An electronic check may be forwarded as an attachmentto the payment message via email. The recipient may access the systemand verify the authenticity of the check using a password supplied bythe payor, reference number, and other applicable parameters. Also, thepayee may print out the electronic check and submit it to a bank withconfirmation information to receive payment or make a deposit.

For example, Sam Woods has a restaurant business that is expanding andhe wants to redecorate his restaurant to create a more welcomingatmosphere. Sam Woods needs to purchase dining tables (round andsquare), chairs, a new bar, and ceiling fans. He finds everything heneeds through Edgar Bradley Furniture's web-site. Sam Woods wants topurchase these products immediately through the web-site and beginupgrading his restaurant. Sam Woods may send a payment message to LisaBradley, the sales representative of Edgar Bradley Furniture, atLisaBradley@EdgarBradley.com. Sam Woods may also specify the exactorder, including quantity, color and model as a file attachment. SamWoods may include the payment and delivery information. Sam Woods alsohas the option to send this payment as an electronic check or certifiedcheck.

Another method of transferring money available through the presentinvention is through Wire Transfers. Money transferred through a wiretransfer may be completed in minutes or may take several days.Generally, wire transfers are commonly used between entities in abusiness transaction for large amounts of money.

As discussed above, FIG. 4 provides an overview of a funds transferprocess according to the present invention. With respect to a wiretransfer, the payor may input additional information at step 430. FIGS.11 a and 11 b illustrate a screen shot of a graphical user interface fora payor to make a Wire Transfer transaction. The payor may enter anelectronic address and a personal message. In addition, the payor mayenter information pertaining to an intermediary bank. The payor may alsoenter information pertaining to a beneficiary bank, which holds theaccount the payee desires the funds to be transferred. The payor mayenter the beneficiary's account information and address. The type ofpayment may also be specified. For example, the payor may designate thetransfer as either urgent or normal. A value date may also be indicatedand the payor has the option of requesting confirmation of payment.

For example, Tony Martin is financing a start up company calledE-shirts.com that specializes in selling T-shirts over the Internet. Theentrepreneurs Dave and Tom are in dire need of money fast. Tony Martinwho is a successful businessman wants to wire transfer money to thiscompany. Tony Martin who has an account with a transfer processingsystem of the present invention may select the wire transfer option andsend an email message to Dave&Tom@shirts.com informing them that moneyis being sent by wire transfer. Tony Martin may also input informationregarding the Intermediary Bank and Beneficiary Bank, including detailsof the wire transfer.

Another method of transferring money available through the presentinvention is through ATM Credit/Debit Card Transfers where funds aretransferred to a card account.

As discussed above, FIG. 4 provides an overview of a funds transferprocess according to the present invention. With respect to an ATMcredit/debit transfer, the payor may input additional information atstep 430. FIG. 12 is an illustration of a screen shot of a graphicaluser interface for a payor to make an ATM Credit/Debit transfertransaction. The payor may enter an electronic address and a personalmessage. In addition, the payor may enter the account number and thecard number to conduct an ATM credit/debit card transfer.

For example, Sue Parker may purchase a digital camera from Mike atCameraShop.com over the Internet through a payment to her ATM CreditCard. Sue Parker may send a payment message by email to Mike where thepayment message is simultaneously sent to a transfer processing system.Mike may have an account with the present invention with an emailaddress of CameraShop@ibq.com. The payment message provides instructionsto debit Sue Parker's ATM Credit Card and transfer these funds toCameraShop.com's account with the system. Sue Parker provides the systemwith her account number and card number. When the payment message issent, her account is debited immediately and her order for a digitalcamera is processed. If CameraShop.com maintains an account with thepresent invention, the payment for the digital camera is immediatelytransferred into CameraShop.com's account thereby facilitating payment.

Each user who maintains an account with a transfer processing system ofthe present invention may receive a unique email address. Email messagesmay be signed with a secret code or electronic signature forauthentication purposes. For confidentiality reasons, some users mayprefer to remain anonymous. This may be accomplished by using an emailaddress that does not reveal anything about the user's name orpersonality, such as a series of random numbers. Users may send andreceive email via the Internet, send and receive secure mail to thetransfer processing system, send and receive secure communications withother users, send out invitations to other non-members to join thesystem, and send out special instructions explaining how to makepayments to accounts maintained by the system and how to receive fundsfrom users of the system.

The system of the present invention enables payees to receive money toan email or postal address whether the recipient has an account with thesystem or not. The payor may enter the system and complete a paymentmessage addressed to the recipient. The payor may provide therecipient's name and the recipient's email or postal address. Thepayment message informs the recipient of payment through email orregular mail. This message may include detailed instructions on how toverify the authenticity of the payment message and how to access thefunds available to the recipient. This payment message simultaneouslyserves as funds transfer instructions to the bank. The payment messagemay be electronically signed and forwarded to a transfer processingsystem where the payor's account is debited accordingly.

Once the recipient is notified of the transfer of funds, the recipientmay access the funds through the transfer processing system using areference number provided by the payment message and a password providedby the payor. The payment message gives the recipient the right toaccess the funds (held in route) which are made available to therecipient by the sender. The payor may specify the time frame at whichthe recipient may exercise this right of withdrawal. Thus, the recipientis informing the system of the particulars of the transfer (such as,reference number and password) and the sender is confirming the accuracyof the request and allows the transaction to occur. Once the recipienthas accessed the funds, the recipient may make a transfer to a systemaccount, order a wire transfer, make a transfer via Western Union moneytransfer, generate a certified check, electronic check or regular check,make a transfer to an ATM or credit/debit card, or receive cash at abank or transfer processing system that has an account with the presentinvention.

Senders may send payment messages to subscriber payees andnon-subscriber payees. Once the non-subscriber payee enters the systemand accesses the funds, the non-subscriber payee may register with thesystem and open a personal account where the funds accessed may beimmediately deposited. The payee is also given a personal email accountwith the system. This payee who is now a subscriber of the system maysend input payment instructions at a transfer processing system forfunds transfers to other individuals or entities.

Another feature of the present invention is the anonymity at which fundsmay be transferred. Users may select email addresses that do notdisclose anything about the user's name or affiliation with a group orcompany. For example, a user may send and receive funds using an emailaddress comprising random numbers to preserve the user'sconfidentiality. Local banking laws may require the IBQ subscriber toprovide information to the financial institution, but only the emailaddress is sent to the payee if the payor so desires. Moreover, thepayee may maintain anonymity as well because only an email address maybe used at which to receive funds, when they are redirected to anotherform of payment.

Subscriber payors may invite a potential recipient, who is not asubscriber to the present invention, to become a member of the transferprocessing system before the payor actually makes a transfer of funds.The payor may enter the system and provide the potential recipient'sinformation so that the system may issue an invitation to join thesystem. Once the payor obtains an IBQ account with the system, the payeemay instantly transfer funds to the payee's IBQ account. Thus, thepotential payee becomes a member of the system before the payor transferthe funds. The payor may now transfer the funds to the payee's accountwith the system for a instant transaction.

Alternatively, a subscriber payor may send a payment message to anon-subscriber payee. Once the payment message is processed andreceived, the payee may access a transfer processing system to retrievethe funds transferred. At this point, the payee may open an account withthe transfer processing system. The funds that are available to thepayee may be immediately transferred into the payee's newly openedaccount with the system. Now, the payee may transfer funds to othersubscribers or non-subscribers of the system. The system of the presentinvention may compensate the subscriber through financial compensationor by providing additional services to the payor for each invitationthat is accepted by potential payees. Also, the financial institutionand IBQ system may enter into a business arrangement wherebycompensation is exchanged based on new customers. Because accessing IBQfunds provides an incentive to open an account with a memberinstitution, the IBQ system may be paid by the financial institution foreach new customer. The compensation may be a flat fee, may be based on apercentage of the deposit, may be based on a percentage of transactionfees generated or any other shared risk compensation structure.

Another option available to the payee is the ability to redirect thefunds received from the payor. The payee may redirect the funds toanother bank or credit account(s). To initiate this feature, the payeemay complete an order requesting the redirection of funds. A notice ofconfirmation may be sent to the original payor for confirmation. Inaddition, an electronic signature of the original payor may be required.The request for redirection may then be processed and completed.Redirection of funds may be useful for business and personaltransactions. For example, a buyer may transfer funds to a seller inexchange for goods. Once the buyer receives notice of the transfer offunds, the buyer may redirect all or a portion of these funds to themanufacturer of goods as payment for the goods. In another example, anindividual may receive funds through a business deal by the presentinvention. This individual may then redirect the funds received to hisor her creditors to remain in business.

FIG. 13 is a diagram of a system where transfers occur between clientsof different financial institutions as affiliates of different transferprocessing systems according to an embodiment of the present invention.This feature of the present invention provides funds transfer betweenclients of different transfer processing systems in a fast andconvenient manner. Settlement system 450 maintains a network ofagreements with different financial institutions (460, 470, 480) (whichperform as financial institutions 180 described above) and their clientsfor settling funds transfers between different banks through theInternet. Payor system 410 may send payment information to a transferprocessing system. The transfer processing system sends a transfermessage to the appropriate financial institution and a payment messageto payee system 420, which may be in the form of an email or other modeof communication. The payment message is received by settlement system450 so that the funds from the payor system's account maintained infinancial institution 460 is debited and the payee system's accountmaintained in a different financial institution 470 is credited pursuantto payor system's payment instruction. Because the payee system 420 alsomaintains an account that is maintained by settlement system 450, payeesystem 420 receives payment immediately. The payee system does not haveto maintain an account that is maintained by settlement system 450. Inthis case, the funds transferred by the payor system to a non-memberpayee system are made available to the payee system through connectionwith the settlement system. Settlement system 450 is also responsiblefor maintaining and providing communication channels and systems via theInternet to clients of various banks. Thus, fast and convenient fundstransfer is provided by the present invention with minimum transactioncosts.

For example, Bill Roberts may have an account with financial institution460 in Germany while Mike Yojihama may have an account with financialinstitution 470 in Japan. Bill and Mike are partners in an on-line audiovisual equipment store. Bill who manages the company in Germany needs totransfer funds to Mike who purchases technical equipment from Japan.Bill may send a payment message via email to Mike through the presentinvention where the payment message informs Mike of the details of thetransfer. When Mike receives this payment message, Mike is assured thatthe funds have been transferred into his account the financialinstitution where his IBQ account exists and may be used to paywholesalers in Japan for audio visual equipment.

The present invention may be particularly useful for e-commercetransactions. More and more web-sites are selling goods and servicesover the Internet. This includes the sale of cars, books, jewelry,clothing, various services, information, and anything else that may besold for a price. Purchases over the Internet are convenient,economical, and quick. Auction-type services on the Internet have alsogained more popularity and general acceptance. The speed at whichtransactions occur is especially critical in auction-type transactionswhere time is of the essence. If the potential purchaser is delayed intransferring the funds, the purchaser may lose the opportunity topurchase the product or may have to offer an even higher bid.Transferring funds in accordance with the present invention may becompleted instantly when both parties are members of a transferprocessing system. The buyer may access his or her account with thepresent invention from the seller's web page, complete a form for fundstransfer, input the seller's information, and provide an electronicsignature to make an immediate electronic payment. Alternatively, thebuyer may complete an invoice on the seller's web page, provide thebuyer's personal account information of the present invention, andprovide an electronic signature to complete an electronic payment.

Financial institutions that are members of a settlement system may opensystem accounts for their clients in accordance with local banking laws.This is important for world-wide funds transfer to different countrieswith different banking laws. For example, a resident of Germany may openan account with a financial institution in Germany according to thosebanking laws and regulations. Financial institutions located indifferent countries may establish relationships through a settlementsystem for world-wide funds transfer. Financial institutions that aremembers of the settlement system gain access to an enormous customerbase, receive commission from each transaction, and gain expansive useof the Internet through funds transactions.

Another feature of the present invention is the ability to send funds ina different currency. This is particularly important for internationalfunds transfer. Through the use of the Internet, business transactionsare expanding more rapidly into world wide transactions. The presentinvention simplifies the task of converting funds into differentcurrency by automating the process. Payors may conveniently makepayments to individuals and corporations in foreign countries.

Another feature of the present invention is the ability to invite nonsubscribers to join the system of the present invention when asubscriber payor sends an electronic message informing a non subscriberpayee that funds have been transferred and are now available. Thisfeature of the present invention provides a useful marketing tool inreaching potential subscribers by targeting individuals who need toaccess the present invention in order to retrieve funds transferred tothem. Another method of reaching new subscribers involves a subscriberproviding a list of email addresses of potential subscribers.

The present invention also provides the ability to inform payees offunds transfer through other modes of communication, such as cell phonesand pagers. This allows the payee to receive information of fundstransfer immediately and at the payee's most convenient method ofreceiving information. Therefore, the payee may be informed of fundstransfer even when the payee does not have immediate access to acomputer.

The present invention also provides the ability to sends payment messagethrough private chat rooms, AOL Instant Messenger, NetMeeting, MicrosoftChat, ICQ, Netscape Messenger and other similar electronic methods ofcommunication. Thus, funds may be instantly transferred while the payorand payee are conversing over an electronic medium. This feature mayfacilitate negotiations and transactions between business entities.

The present invention provides many services with respect to sendingfunds from an account with the system. For example, senders may transferfunds to other recipients having accounts with the system. Senders maytransfer funds to an email address to a recipient who does not have anaccount with the system where the intended recipient may be invited tojoin the system, informed of funds transfer, receives a password throughan alternative communication method to access and receive thetransferred funds and receives instructions for funds retrieval. Thesender may also issue an order for a check where transfer processingsystem prepares and mails a regular or certified check by mail or mayissue an electronic check. The sender may even issue an order for a wiretransfer, send a transfer via Western Union money transfer where thetransfer is collected in cash, or transfer money to an ATM credit/debitcard where the transfer is made to a card account.

Individuals receiving transferred funds are also entitled to manyservices through the present invention. For example, the recipient mayreceive a transfer from another system account or a money transfer.Recipients may also collect payments through a debit/credit card ordeposit a check in the recipient's personal account.

Cash withdrawals are also provided by the system of the presentinvention through an ATM credit/debit card, via Western Union moneytransfer, or cash withdrawals at a member bank. In addition, users maytransfer funds through letters of credit, buy/sell securities and mayalso issue stop payment orders.

One time money transfer are also available through the presentinvention. In particular, the system allows a single money transferwithout requiring an account with the system. Non-account holders mayparticipate in money transfers through authorized transfer processingsystems.

Other embodiments and uses of the invention will be apparent to thoseskilled in the art from consideration of the specification and practiceof the invention disclosed herein. The specification and examples shouldbe considered exemplary only.

What is claimed is:
 1. A method for transferring funds over the Internetcomprising the steps of: receiving via the Internet at a transferprocessing system that has access to funds from a payor account anelectronic message that contains fund transfer information, the fundtransfer information comprising a fund transfer amount and an electronicaddress for the payee; initiating transfer of funds from the payoraccount to the payee at the transfer processing system by accessing thefunds in a payor account, wherein the funds may be transferred to eithera payee account or a holding account based on whether the payee accountis available to the transfer processing system; wherein the initiatingstep comprises the following: if a payee account associated with theelectronic address for the payee provided in the electronic message isaccessible to the transfer processing system, then initiating transferof funds from the payor account to the payee account associated with theelectronic address for the payee; and if a payee account is notavailable to the transfer processing system and an email type transferis requested, then initiating transfer of funds from the payor accountinto a holding account associated with the electronic address of thepayee; and simultaneously with the initiation step, transmitting apayment message over the Internet to the payee's electronic address fromthe transfer processing system, the payment message containinginformation that confirms to the payee that the payor has made fundsavailable to the payee.
 2. The method of claim 1 further comprising thestep of enabling the payee to access the funds transferred.
 3. Themethod of claim 1 wherein the payment message comprises a reference tothe holding account to enable the payee to access the funds in theholding account.
 4. The method of claim 3 further comprising the step ofenabling the payee to connect to the transfer processing system over theInternet to input the reference to establish a payee account.
 5. Themethod of claim 3 further comprising the step of enabling the payee toconnect to the transfer processing system over the Internet to input thereference to transfer the funds from the holding account into anotherfund account.
 6. The method of claim 5 wherein the fund accountcomprises a cash delivery service account.
 7. The method of claim 1wherein further comprising the step of: communicating an authenticationkey to the payee; and enabling the payee to access funds in the holdingaccount upon entry of the authentication key.
 8. The method of claim 7wherein the payment message comprises a reference to the holding accountto enable the payee to access the funds in the holding account andwherein the payee enters the reference and the authentication key toaccess the funds.
 9. The method of claim 1 wherein the payment messageis transmitted through email.
 10. The method of claim 1 wherein thepayment message is transmitted through an instant messenger system. 11.The method of claim 1 wherein the payment message is transmitted to achat room participant.
 12. The method of claim 1 wherein the fundtransfer information comprises information for making a wire transferand wherein the step of initiating transfer of funds transmits a wiretransfer request for transferring funds from the payor account to anaccount specified in the fund transfer information.
 13. The method ofclaim 12 wherein the payment message informs the payee that the wiretransfer has been initiated from the payor to a specified account. 14.The method of claim 1 wherein the fund transfer information comprisesinformation for generating a check and wherein the step of initiatingtransfer of funds transmits a request to generate a check from the payoraccount to a payee specified in the fund transfer information.
 15. Themethod of claim 14 wherein the fund transfer information comprisesinformation for generating an electronic check and wherein the paymentmessage includes the electronic check.
 16. The method of claim 1 whereinthe fund transfer information comprises information for making a cashdelivery service transfer and wherein the step of initiating transfer offunds transmits a request for transferring funds from the payor accountto a cash delivery service where the payee may receive the funds. 17.The method of claim 1 wherein the fund transfer information comprisesinformation for making a transfer to an ATM/credit card and wherein thestep of initiating transfer of funds transmits a request fortransferring funds from the payor account to an ATM/credit card.
 18. Themethod of claim 1, further comprising: prior to initiating transfer offunds, determining whether a payee account is available to the transferprocessing system.
 19. A system for transferring funds over the Internetcomprising: fund transfer information receiving means for receiving anelectronic message over the Internet that contains fund transferinformation, the fund transfer information comprising a fund transferamount, a fund transfer type and an electronic address for the payee;fund transfer information parsing means for parsing the electronicmessage to generate a transfer message to transfer funds from the payoraccount to the payee and to generate a payment message containinginformation to confirm to the payee that the payor has made fundsavailable; wherein if the fund transfer type is an email transfer and ifthe transfer processing system has a payee account associated with theelectronic address, then the transfer message specifies a payee accountassociated with the electronic address for the payee into which thefunds are to be transferred from the payor account; and wherein if thefund transfer type is an email transfer and if the transfer processingsystem does not have a payee account associated with the electronicaddress, then the transfer message specifies the electronic address ofthe payee for association with a holding account into which the fundsare to be transferred; wherein if the fund transfer type is a type otherthan an email transfer, then the transfer message specifies the detailsof the transfer to be executed to make the funds available to the payee;and payment message transmission means for transmitting the paymentmessage to the payee at the electronic address specified.
 20. The systemof claim 19 further comprising fund access means for enabling the payeeto access the funds.
 21. The system of claim 19 wherein the transfermessage includes instructions to transfer funds from the payor accountto a payee account accessible by the transfer processing system.
 22. Thesystem of claim 19 wherein if the transfer type is an email and thepayee does not have a payee account, then the payment message comprisesa reference to the holding account to enable the payee to access thefunds in the holding account.
 23. The system of claim 22 furthercomprising payee interface means for enabling a payee to connect overthe Internet to input the reference to transfer the funds from theholding account into another fund account.
 24. The system of claim 23wherein the fund account comprises a cash delivery service account. 25.The system of claim 23 wherein the payee enters an authentication keyprovided by the payor to the payee to access funds in the holdingaccount.
 26. The system of claim 19 further comprising payee interfacemeans for enabling a payee to connect over the Internet to input thereference to establish a payee account.
 27. The system of claim 19wherein the payment message transmission means comprises an emailserver.
 28. The system of claim 19 wherein the payment messagetransmission means comprises an instant messenger system.
 29. The systemof claim 19 wherein the payment message transmission means comprises achat room server.
 30. The system of claim 19 wherein the fund transfertype comprises a wire transfer type and the fund transfer informationcomprises information for making a wire transfer and further comprisingwire transfer means for transferring funds via wire transfer from thepayor account to an account specified in the fund transfer information.31. The system of claim 30 wherein the payment message informs the payeethat the wire transfer has been initiated from the payor to a specifiedaccount.
 32. The system of claim 19 wherein the fund transfer typecomprises a check generation transfer and the fund transfer informationcomprises information for generating a check and further comprisingcheck generation means for generating a check from the payor account toa payee specified in the fund transfer information.
 33. The system ofclaim 32 wherein the fund transfer information comprises information forgenerating an electronic check and wherein the check generation meansgenerates an electronic check which is included in the payment message.34. The system of claim 19 wherein the fund transfer type comprises acash delivery transfer and the fund transfer information comprisesinformation for making a cash delivery service transfer and furthercomprising cash delivery service transfer means for transferring fundsfrom the payor account to a cash delivery service where the payee mayreceive the funds.
 35. The system of claim 19 wherein the fund transfertype comprises a ATM/credit card transfer and the fund transferinformation comprises information for making a transfer to an ATM/creditcard and further comprising ATM/credit card transfer means fortransferring funds from the payor account to an ATM/credit card account.36. A method of transferring funds over the Internet anonymously to anelectronic address, the method comprising the steps of: enabling a payorto input fund transfer information over the Internet to a transferprocessing system, the fund transfer information comprising payoraccount information regarding an account accessible by the transferprocessing system, a fund transfer amount information and an electronicaddress for the payee, wherein the electronic address does not identifythe payee; transferring funds from the payor account into a holdingaccount and assigning a payment control number to the payment;transmitting the payment control number to the electronic address toenable a user that receives the reference number to access the funds inthe holding account.
 37. The method of claim 36 wherein the referencenumber does not identify the identity of the payor or the payor'saccount information.
 38. The method of claim 36 further comprising thestep of: communicating an authentication key to a payee and wherein theuser inputs the reference number and authentication key to access thefunds in the holding account.
 39. The method of claim 38 wherein theauthentication key is a password.
 40. A system for transferring fundsover the Internet anonymously to an electronic address comprising: fundtransfer information receiving means for receiving fund transferinformation over the Internet, the fund transfer information comprisingpayor account information regarding an account accessible by thetransfer processing system, a fund transfer amount information and anelectronic address for the payee, wherein the electronic address doesnot identify the payee; transfer means for transferring funds from thepayor account into a holding account and assigning a reference number tothe account; reference number transmission means for transmitting thereference number to the electronic address to enable a user thatreceives the reference number to access the funds in the holdingaccount.
 41. The system of claim 40 wherein the reference number doesnot identify the identity of the payor or the payor's accountinformation.
 42. The system of claim 40 further comprising wherein theuser inputs the reference number and an authentication key provided bythe payor to access the funds in the holding account.
 43. The system ofclaim 42 wherein the authentication key is a password.
 44. A method fortransferring funds over the Internet comprising the steps of: receivingvia the Internet at a transfer processing system that has access tofunds from a payor account an electronic message that contains fundtransfer information, the fund transfer information comprising a fundtransfer amount and an electronic address for the payee; initiatingtransfer of funds from the payor account to the payee at the transferprocessing system by accessing the funds in a payor account, wherein theact of initiating transfer of funds comprises initiating transfer offunds from the payor account into a holding account associated with theelectronic address of the payee, wherein a payee account is notavailable to the transfer processing system and an email type transferis requested; and simultaneously with the initiation step, transmittinga payment message over the Internet to the payee's electronic addressfrom the transfer processing system, the payment message containinginformation that confirms to the payee that the payor has made fundsavailable to the payee.